OMV Petrom third quarter net profit falls 20 percent

Romania’s leading oil&gas company OMV Petrom (SNP.RO) Thursday reported a 20 percent decrease in third-quarter net profit, mainly due to lower sales and an increase in the property tax, writes Mediafax.

Sales dropped 11 percent in January – September, from RON 18.1 billion to RON 16.2 billion (EUR 3.64 billion), and net profit dropped 34 percent to RON 2.4 billion (EUR 539.5 million).

Profit dropped to RON 1.02 billion ($288 million) from 1.27 billion lei in the same period last year as both the gas and power business had a negative contribution “triggered by adverse market conditions,” the company said in a statement to the Bucharest bourse today. Gas sales fell 23 percent to 798 million lei.

“In light of the volatile and weaker market fundamentals we are reviewing our investment plans fro 2015, which will be announced on Feb. 19,” Petrom Chief Executive Officer Mariana Gheorghe said in the statement. “A stable and predictable investment-friendly fiscal and regulatory environment remains a key prerequisite for our investment program.”

At a group level, OMV Petrom accounts for 54.3 percent of OMV’s profit for the year, compared to 47.7 percent in the first nine months of 2013. OMV”s incom took a hit from lowering oil prices and political instability in Libia.

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Pre-tax profit for OMV is down 23 percent in the first nine months of the year, from EUR 2.2 billion in 2013 to EUR 1.693 billion.